Canadian yoga and athleisure pioneer Lululemon Athletica Inc. increased net sales by 18 percent to $2.2 billion in the second quarter of 2023. On the basis of constant exchange rates, growth would amount to 20 percent. Sales in the home market of North America grew by eleven percent and internationally by 52 percent. 40 percent of sales were generated in direct sales, which is two percent less than in the same period last year. Inventory at the end of the second quarter of 2023 increased 14 percent to $1.7 billion compared to $1.5 billion at the end of the second quarter of last year.
Operating income increased 19 percent to $479.3 million.
Lululemon opened 10 new, self-operated stores net in the second quarter, bringing it to 672 stores to date. 655 of them are self-managed. Markets include USA, China, Canada, Australia, England, South Korea, Germany, New Zealand, Singapore, Japan, France, Ireland, Spain, Malaysia, Sweden, Netherlands, Norway, Switzerland and recently Thailand. The first store went online there in July.
For the third quarter of 2023, the company expects net sales to be in the range of USD 2.16 to 2.19 billion (approx. EUR 1.99 to 2 billion), which corresponds to growth of 17 to 18 percent.
Goal: Doubling of net sales within five years
Meghan Frank, Chief Financial Officer, stated, “Our performance remained strong in the second quarter as both revenue and earnings per share exceeded our expectations. Our continued momentum is the result of our portfolio approach to growth, our differentiated business model and our innovative product range. We are excited about our opportunities in the second half of the year and look forward to continuing to execute on our Power of Three ×2 growth plan.”
The company’s Power of Three ×2 growth plan projects net sales to double from $6.25 billion in 2021 to $12.5 billion by 2026 before. The main pillars of the plan are product innovation, customer experience and market expansion. The growth strategy includes a plan to double men’s net sales, double direct sales and quadruple international net sales compared to 2021.